Report Prepared by: Leah Brown, Management Analyst, and Valeria Renteria, Associate Planner, Development Services Department
Title
SUBJECT: Acceptance of the 2025 General Plan Annual Report Summarizing the Status of the Merced Vision 2030 General Plan and the Steps Taken to Implement the General Plan Policies and Implementation Actions and Acceptance of the 2025 Housing Element Annual Progress Report Summarizing the City’s Progress in Meeting the City’s Share of Regional Housing Needs and the Goals and Policies of the Housing Element Including Number of Entitlements, Permits, and Certificates of Occupancy for All Housing Types
REPORT IN BRIEF
Considers accepting the 2025 General Plan Annual Progress Report and the 2025 Housing Element Annual Progress Report and allows the public an opportunity to provide oral testimony and written comments regarding the 2025 Housing Element Annual Progress Report for information only.
RECOMMENDATION
City Council - Adopt a motion accepting the 2025 General Plan Annual Report and the 2025 Housing Element Annual Progress Report for information only.
Body
AUTHORITY
Government Code Section 65400 and 65700 require cities and counties to submit an annual progress report on the implementation of the General Plan and the Housing Element to the legislative bodies.
DISCUSSION
State law requires that all cities and counties submit an annual report on the status of the General Plan and progress on its implementation to their legislative bodies, known as a General Plan Annual Progress Report (APR). State law also requires that all cities and counties create an annual progress report that described the community’s progress toward implementing their Housing Element. The Housing Element Annual Progress Report has detailed data requirements, and the State has developed a standardized spreadsheet format for submitting the required data.
Both reports are supposed to be provided to the Governor’s Office of Land Use and Climate Innovation (LCI) and the Department of Housing and Community Development (HCD) by April 1 of each year covering the previous calendar year.
The General Plan Annual Progress Report (Attachment 1) has been prepared to summarize the status of the Merced Vision 2030 General Plan, adopted in January 2012, and steps that have been taken to implement General Plan policies and implementing actions during the 2025 calendar year. The report also includes a summary of General Plan and Specific/Community Plan Amendments that were approved from January 1, 2025, through December 31, 2025. The General Plan Annual Report also includes a summary of the Housing Element Annual Progress Report described below.
The Housing Element Annual Progress Report describes the City’s progress in meeting the City’s share of the Regional Housing Needs Allocation (RHNA) and the goals and policies of the City’s Housing Element (one of the required sections or chapters of the General Plan). This report provides information on the number of entitlements, permits, and certificates of occupancy issued for all housing types for calendar year 2025. In addition, the Housing Element Annual Progress Report describes the steps and actions taken to meet the goals and policies set forth in the Housing Element.
In order to make the report legible when printing, Attachment 2 includes the Summary Table and Attachment 3 includes Table A2. Table A2 was divided into 4 sections - Entitlements, Building Permits Submitted, Certificates of Occupancy Issued, and Other Details. For an electronic copy of the entire report in the format submitted to the State, please contact the Planning Department via email at planningweb@cityofmerced.gov.
It is important to note that the City is required to provide sufficient land zoned for residential uses to accommodate the number of housing units determined by the RHNA. However, the City is not required to build the housing. The City has worked with several non-profit partners to develop affordable housing and with the adoption of City Council Policy 2023-83 for the Regional Housing Needs Allocation Unit Production Plan, more affordable housing is expected to be built by private developers as property is annexed into the City or an in-lieu fee paid to support affordable housing projects.
Following adoption of a compliant Housing Element, several Zoning Ordinance updates will be necessary to implement required programs and ensure compliance with state law. The City’s current Housing Element is an eight-year plan covering 2015 through 2023. The City is actively working toward substantial compliance for the 6th Cycle Housing Element (2024-2032).
The City of Merced collaborated with other local jurisdictions on a multi-jurisdictional Housing Element Update. This regional approach is increasingly common, with neighboring counties having completed or currently undertaking similar efforts. It is also typical for HCD to conduct multiple rounds of review before determining that a Housing Element is in substantial compliance.
The City began submitting drafts of its Housing Element to HCD in May 2024. Each submission includes a seven-day public comment period, revisions in response to comments, and a subsequent 60-day HCD review period. The City resubmitted three additional drafts in 2025, incorporating substantial comments and revisions each time. As of the drafting of this report, the City is preparing to resubmit the latest draft for public comment during the current 60-day HCD review period, as advised by HCD, due to the document being close to achieving substantial compliance. Once HCD finds the Housing Element in substantial compliance, it will be presented to the Planning Commission and then to the City Council for consideration of adoption.
The City is also including in its APR a status update on parcels rezoned to address the shortfall in RHNA units. In April 2025, the City Council approved the rezoning of 27 sites throughout the City to accommodate the required 10,517 dwelling units under the City’s RHNA allocation.
In addition, a comprehensive update to the General Plan was initiated in April 2025. The City Council approved a contract with Mintier Harnish to provide professional consultation, assist staff with research, community outreach, and preparation of the comprehensive General Plan Update. Further updates to the Zoning Ordinance will occur following adoption of the next General Plan.
City Council Action
The City Council should provide an opportunity for the public to provide oral and written comments regarding the Housing Element Annual Progress Report. Once all comments have concluded, the City Council should consider a motion accepting the General Plan Annual Progress Report and the Housing Element Annual Progress Report for information only. If approved, City staff will then submit the reports to the State by the April 1 deadline.
ATTACHMENTS
1. 2025 General Plan Annual Progress Report
2. 2025 Housing Element Annual Progress Report - Summary
3. 2025 Housing Element Annual Progress Report - Table A2